If short-term executive suites are an invaluable tool for helping startups put down roots with a corner office of sorts, they also offer landlords a tool for growth during a down economy.
Norwalk-based Building & Land Technology recently announced the opening of a pair of short-term lease office suites in Stamford, calling the facilities BLT Business Centers. The company”™s new venture is a sideline to its main business of building or renovating offices for long-term tenants, but indicative also of today”™s economy.
“They offer businesses the ability to grow or restructure, in addition to providing an ideal setting for a satellite office or start-up company,” said Carl Kuehner III, CEO of BLT.
The centers are located at Two Stamford Landing and at Harbour Square at 700 Canal St.
Along with around-the-clock access to furnished offices, the facilities offer conference rooms, mail services, utilities and telecommunications and shuttle service to the Stamford Transportation Center.
Disaster recovery is another important aspect of the BLT Business Centers, according to Jane Porter, who manages the Two Stamford Landing center, including building emergencies, system failures or any other sudden workplace disturbance.
It is not unusual for building owners to create short-term office space when they have 10,000 square feet or more of vacant space. The executive suite industry is in the midst of a profound change, however, by the advent of virtual office services that allow businesses to list an address in a neighborhood they may be otherwise be priced out of, along with a local phone number and receptionist and meeting space when needed. In addition to small businesses on tight budgets, virtual offices are being marketed to companies looking to establish a geographic presence at a fraction of the cost they might otherwise have to shoulder.
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Fairfield County has a long list of available executive suites, including multiple centers operated by Regus PLC at One Stamford Plaza and Soundview Plaza in Stamford, and at 500 W. Putnam Ave. in Greenwich and 40 Richards Ave. in Norwalk.
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Connecticut Business Centers also has multiple centers at 6 Landmark Square in Stamford and 191 Post Road West in Westport, the latter address marketed to small financial firms.
Several independent office suite companies operate locally as well, including:
- American Business Centers at 1177 High Ridge Road in Stamford;
- SoNo Corporate Suites at 50 Washington St. in South Norwalk;
- Corporate Executive Offices in Greenwich at Two Sound View Drive and Two Greenwich Office Park.
There are more than 4,000 short-term executive suites in the United States, according Office Business Centers Association International, a trade group based in Columbus, Ohio.
Regus operates more than 400 such centers in the United States, and in the first half of 2009 its Americas revenue was up 19 percent to (227 million pounds). The company listed a 79 percent occupancy rate in the Americas, compared to an 84 percent occupancy rate a year earlier.
Regus CEO Mark Dixon told analysts in August that the company was looking to exploit the softening commercial real estate market by opening additional centers.
Andrea Pirrotti, the former head of marketing for Regus, now runs the Fairfield-based Pirrotti Marketing Group, which is a consultant for operators of short-term executive suites, and authors a blog titled FillingSeats.com.
Pirrotti said that in response to the recession, some companies have slashed prices on available space, but few have created a tailored marketing plan to chase business from displaced workers who are starting up their own businesses, or existing home-based businesses that might be considering anew leasing an office as prices descend.
